liable for US tax?

oneisnotamused

Hello, sorry if this in in the wrong place. Not sure who/where to ask.

I'm currently building up a crochet design business freelance. In a nutshell a magazine commissions a design idea of mine, I write the instructions and sell them the pattern for a fixed fee. So far I've only dealt with magazines based in the UK.

My question is, if I did a commission for a US based magazine/website would I be liable to pay tax in whatever US state the magazine/website was based in?

Obviously it'd be taxed here through my self assessment. But wondered what, if any, the situtaion is with being paid a one off fixed fee from another country?

Thanks for any help.

EdSwippet

oneisnotamused said:

My question is, if I did a commission for a US based magazine/website would I be liable to pay tax in whatever US state the magazine/website was based in?

No US tax liabilities, on the information given. The US/UK tax treaty should covers things.

For employment income, article 14 paragraph 1(a): "... salaries, wages, and other similar remuneration derived by a resident of a Contracting State {UK} in respect of an employment shall be taxable only in that State {UK} unless the employment is exercised in the other Contracting State {US}." It's possible I suppose that this money might be royalties, in which case article 12 paragraph 1: "Royalties arising in a Contracting State {US} and beneficially owned by a resident of the other Contracting State {UK} shall be taxable only in that other State {UK}."

The magazine or web site should not apply any US tax withholding to payments it makes to you. If if does though for any reason, you can (and should) send a tax return with treaty claim to the US IRS to get it entirely refunded.

oneisnotamused

That's very helpful and sounds like a straightforward payment could be made with no worries.

Thank you!